The Canadian gambling market was once seen as something of a quiet backwater. A look across the southern border to the US would show the likes of Las Vegas and Atlantic City continually drawing people in from all over the world. How could Canada, with its cold weather and lower urban density, ever hope to compete with these iconic destinations? Well, it already is, and the experts tell us that things are trending in one direction from here on in.
How is the Canadian gambling market performing?
A total of $63 billion was wagered in the last 12 months alone, with a staggering $14.2 billion in gaming revenue generated as a result. This turns the gambling industry in Canada into a legitimate 11-figure business with the financial reserves to drive new growth and innovation. This is exactly what you want to hear when you’re looking to identify the key growth industries that will fuel the Canadian economy in the coming years.
A key point here is that almost half (45%) of the total gaming revenue came from online gambling players. This is a massive shift compared to just a decade earlier, when online gambling was very much in its infancy and seen as merely a distraction. In 2024, anyone, anywhere, can log on and place a wager or play a game in the comfort of their own home. This opens up not just new ways to connect with loyal punters but also the possibility to massively increase the size of the total audience.
Bright colours, engaging games, interesting themes, lightning deals and free offers are all helping drive the growth of the online portion of the market. The fact that virtually every Canadian has a phone by their side every waking hour means that reaching out to them has become a little less challenging. Today, gaming companies can literally put their latest offer of free spins straight into the palm of the hand of anyone they want to. In order to capture data and achieve a wide range of insights, they can also use in-built analytics, such as:
- How long a certain player waits between email advertisements before trying out a new game for the first time.
- Whether or not free spins actually convince a specific demographic or style of player to try out a new game.
- How discount codes can be used to persuade dormant players to start interacting with the system again.
- What is the influence of individual playing style on the amount of money that is wagered, and which touchpoints can be leveraged to increase the size of the wagers.
This granular level of detail is something that is a significant driver of the impressive expansion of the Canadian gambling industry in 2024.
What else is driving the boom in Canadian gambling?
Dive deeper into the details and you’ll start to see that a key demographic shift is currently occurring. Punters and players in middle age remember a time before smartphones, but today’s young adults and college students do not. We are now experiencing the first wave of smartphone-enabled youngsters entering the world of work and generating their own financial income. They are tech-savvy and highly mobile in terms of the platforms they use, and have a default preference for online as opposed to in-person interaction in many cases.
This shift extends to everything from booking grocery home deliveries online to using a faceless Uber app or WhatsApp message instead of picking up the phone and dialling. For virtually all involved, this is not even so much a conscious choice as it is one that has been thrust upon them. If you grow up in a world in which everyone around you is connected online and glued to a screen, you will accept this as the status quo and take it up as well.
Canadian online gambling has captured the imagination of this new generation with quick, highly playable games that provide an instant dopamine hit. The key is to balance this dopamine hit with playability, and that’s something that is achieved with a highly gamified approach to gambling. The idea is that the more a player enjoys the game itself, as opposed to simply enjoying gambling, the longer they will play and the more they will wager.
Is the Canadian gambling industry set to continue growing?
All signs from the experts indicate that this is very much the case, with positive noises being unanimous across the board. We spoke to Adam Nadeau, site founder and finance expert at PlayCasinos, who had the following to say: “The growth of the industry can only be a good thing for Canada as a whole. More turnover means higher amounts of tax paid, which funds more public services, which then makes everyone’s lives that little bit better.
“The economics make sense from a purely business standpoint. The growth is not only rapid but also sustainable. This second point is the key here – we need an industry that is on a sound financial footing, not one that is achieving rapid growth by being part of a bubble.
“The more I look at the demographic shift that is occurring within Canada right now – I’m talking about the changing face of consumer behaviour, really – the more encouraging the signs are. Mobile interactions are here to stay for a generation at least and are showing no signs of being pushed to the margins by new tech like AR, for example. In my opinion, as someone who has been researching this field for more than a decade, the future could not be brighter for the Canadian gambling industry. It has the cash reserves to fund innovation and development that will attract new audiences and demographics.”
Will online gambling continue to attract a new audience and demographic?
The era of mobile social media means that something can be uploaded on a Monday morning and become a global viral sensation by Friday afternoon. The need to see what the crowd is talking about and take a closer look for yourself has never been greater, and this plays into the hands of the Canadian gambling industry.
If you then add in the fact that this is a new generation of people who simply do not know what it means to be bored, you seemingly have the antidote to all their issues. Offering engaging, quick and viral games that can be played during an idle couple of minutes in a bar, restaurant or when waiting in line at the store is pivotal here. Experts such as Adam Nadeau tell us that this trend is not just going to continue but will accelerate at an even faster rate.
The rapid growth of Canadian sports streaming means that in 2024, nearly one in three adults will have access to three or more live sports streaming platforms. Sports leagues now regularly promote sports gambling leagues like DraftKings, not just on their advertising banners around the sidelines but during the live broadcasts themselves.
The ability to connect live sporting events with live sports betting odds is a powerful tool for the industry. Sports leagues like the UFC are increasingly displaying tweets from athletes and celebrities in real time as part of their live programming. Their strategy here seems to be to take online gambling away from being a solo endeavour and turn it into much more of a social activity. This has the dual benefit of showing a broader audience that gambling is a responsible and socially acceptable activity and also one that can enhance the live sporting experience.
By pairing online gambling with the rise of live sports streaming – something that will certainly grow now Netflix has entered the market – gambling companies are making a clear strategic play. The continued integration of streaming and gambling will expose the industry to wider markets and provide gambling experiences that feel connected to the real world.
Final thoughts
Canadian gambling may seem like something of a surprising growth industry in 2024, but all the signs are that it is set to continue growing in 2025. This is good news for consumers, who will get even more choice, as well as for those who are currently working in the industry.
A boom that rises from a solid, robust foundation is also a great way for innovation to continue to drive things forward. Now that mobile tech and fast Wi-Fi are at a point where anyone in the country can connect and play, we can also expect to see new niches, genres and side industries opening up. The future will undoubtedly bring new opportunities and choices for the Canadian gambling industry.